Prev Arrow Stocks

Nike Inc. ($NKE) Stock Forecast: Down 20.6% Today

Morpher AI identified a bearish signal. The stock price may continue to fall based on the momentum of the negative news.

What is Nike Inc.?

Nike (NKE) is a renowned footwear and apparel giant known for its innovative products and strong brand presence in the market. Today, the stock experienced a significant bearish movement due to disappointing fiscal 2024 fourth-quarter earnings and weak guidance for fiscal year 2025.

Why is Nike Inc. going down?

NKE stock is down 20.6% on Jun 28, 2024 19:36

  • Nike's stock plummeted by 20% following a fourth-quarter revenue decline of 2% year-over-year, falling short of analyst expectations.
  • Despite beating the analyst estimate for adjusted EPS, the company's weak revenue and guidance for the upcoming fiscal year led to a massive sell-off.
  • The announcement of launching new $100-and-under sneakers globally to attract budget shoppers might indicate a strategy shift to regain lost sales momentum.
  • The market's reaction to Nike's poor performance reflects investors' concerns about the company's ability to navigate through a challenging product cycle transition and increasing competition in the industry.

NKE Price Chart

NKE News

Why Is Nike (NKE) Stock Down 20% Today?

Shares of Nike (NYSE:NKE) are plunging lower by 20% after the footwear and apparel giant reported a disappointing fiscal 2024 fourth-quarter earnings amid rising competition. NKE stock is set to have its largest one-day decline since 2001. During the quarter, revenue fell by 2% year-over-year to $12.6 billion, falling short of the analyst estimate for $12.86 billion. Of the revenue, $7.1 billion was attributed to wholesale, which rose by 5%. Direct-to-consumer (DTC) revenue fell by 8% to $5.1 billion. The company’s adjusted EPS of $1.01 beat the analyst estimate for 84 cents, although that isn’t helping the company’s case today. Nike’s guidance for fiscal year 2025 was a major letdown, as it now expects sales to fall by “mid-single digits” after guiding for growth during its previous earnings. “We are managing a product cycle transition with complexity amplified by shifting channel mix dynamics (and) a comeback at this scale takes time,” said CFO Matthew Friend.

https://investorplace.com/2024/06/why-is-nike-nke-stock-down-20-today/

News Article Image Why Is Nike (NKE) Stock Down 20% Today?

Nike plans $100-and-under sneakers for budget shoppers

Nike will roll out new $100-and-under sneakers in countries around the world, its chief financial officer said Thursday, as the sportswear giant tweaks its product lineup in a plan aimed at getting sales back on track.

https://www.staradvertiser.com/2024/06/28/breaking-news/nike-plans-100-and-under-sneakers-for-budget-shoppers/

News Article Image Nike plans $100-and-under sneakers for budget shoppers

Nike plots US$100-and-less sneakers to lure price-conscious shoppers

Nike will roll out new US$100-and-under sneakers in countries around the world, its chief financial officer said Thursday, as the sportswear giant tweaks its product lineup in a plan aimed at getting sales back on track.

https://www.ctvnews.ca/business/nike-plots-us-100-and-less-sneakers-to-lure-price-conscious-shoppers-1.6945242

News Article Image Nike plots US$100-and-less sneakers to lure price-conscious shoppers

Wall Street slips, inflation data bolsters rate pivot

Shares in New York slipped in afternoon trade, reversing modesty morning gains. Disinflation narrative intact as focus shifts to jobs. Nike plunges.

https://www.afr.com/markets/equity-markets/wall-street-slips-inflation-data-bolsters-rate-pivot-20240629-p5jpqf

News Article Image Wall Street slips, inflation data bolsters rate pivot

Nike CEO John Donahoe below fireplace from Wall Avenue after Q424 report

World Courant John Donahoe attends the primary day of the annual Allen & Firm Solar Valley Convention in Solar Valley, Idaho. Drew Angerer | Getty Pictures Nike CEO John Donahoe seems to be on skinny ice. The previous CEO of eBaywho has been on the helm of Nike since January 2020, is beginning to lose […]

https://globalcourant.com/nike-ceo-john-donahoe-below-fireplace-from-wall-avenue-after-q424-report/

News Article Image Nike CEO John Donahoe below fireplace from Wall Avenue after Q424 report

Nike Inc. Price History

28.05.2024 - NKE Stock was down 20.6%

  • Nike's stock plummeted by 20% following a fourth-quarter revenue decline of 2% year-over-year, falling short of analyst expectations.
  • Despite beating the analyst estimate for adjusted EPS, the company's weak revenue and guidance for the upcoming fiscal year led to a massive sell-off.
  • The announcement of launching new $100-and-under sneakers globally to attract budget shoppers might indicate a strategy shift to regain lost sales momentum.
  • The market's reaction to Nike's poor performance reflects investors' concerns about the company's ability to navigate through a challenging product cycle transition and increasing competition in the industry.

28.05.2024 - NKE Stock was down 20.4%

  • Nike stock experienced a strong bearish movement following its Q4 earnings report.
  • The market reacted negatively to Nike's worse-than-expected fourth-quarter revenue and weak forward guidance.
  • The pressure on Nike's CEO, John Donahoe, adds to the uncertainty surrounding the company's leadership and future direction.
  • The overall sentiment towards Nike is cautious as it faces revenue declines and market share challenges, signaling a potential transition year for the company.

28.05.2024 - NKE Stock was down 20.0%

  • Nike (NKE) experienced a strong bearish movement today, with its stock falling over 20% after reporting worse-than-expected fourth-quarter revenue and weak forward guidance.
  • The market reacted negatively to Nike's earnings report, where although the bottom line beat estimates, the top line missed and revenues fell year over year.
  • The criticism faced by Nike's CEO for the company's underperformance and loss of market share under his leadership might have further contributed to the bearish sentiment surrounding the stock.
  • The overall market sentiment was mixed and little changed, with U.S. equities reacting to reports of the Federal Reserve's preferred measure of inflation cooling in May, possibly adding to the cautious trading environment.

28.05.2024 - NKE Stock was down 20.2%

  • Nike's CEO, John Donahoe, is facing criticism from Wall Street due to the company's underperformance and loss of market share under his leadership.
  • The fourth-quarter earnings report showed a significant decline in Nike's stock price, dropping more than 12% in after-hours trading.
  • A gloomy sales forecast and concerns about market share losses to competitors like On and Hoka have contributed to a sharp decline in Nike's stock price by 18.6%.
  • The overall sentiment surrounding Nike is negative, with investors worried about the company's growth prospects and ability to compete with emerging brands in the sportswear industry.

28.05.2024 - NKE Stock was down 19.4%

  • Nike's stock (NKE) experienced a significant bearish movement, dropping around 18-19% in response to its second-quarter earnings report.
  • The main factors contributing to this market reaction include a surprise drop in annual sales, weaknesses in the Lifestyle brand (particularly in the Digital channel), challenges in the Chinese market, and unfavorable foreign exchange rates.
  • Analysts noted that the earnings report represented a more substantial reset for Nike than initially anticipated, adding to investor concerns.
  • The gloomy sales forecast and the overall disappointing performance in key areas seem to have fueled worries about Nike's ability to compete with emerging brands and maintain its market share, leading to the bearish trend in the stock price.

28.05.2024 - NKE Stock was down 20.2%

  • Nike's stock witnessed a notable decline today, falling over 17% attributed to a bleak sales outlook and revenue below expectations for the fiscal fourth quarter.
  • Various analysts spotlighted the necessity for a significant revamp in Nike's culture and strategy post the unsatisfactory earnings disclosure.
  • The mention of a securities class action lawsuit by a law firm representing Nike investors intensified the already pessimistic atmosphere surrounding the stock.
  • The downward trajectory of Nike's stock also impacted other athletic product companies, leading to their decline in the market.

28.05.2024 - NKE Stock was down 19.5%

  • Nike stock plunged over 17% due to a dismal sales forecast for the fiscal fourth quarter, falling short of estimates and reducing its sales outlook for fiscal 2025.
  • The announcement of a class action lawsuit on behalf of investors who purchased Nike stock during a specific period might have added to the negative sentiment surrounding the company.
  • Investor concerns about Nike's growth prospects were further exacerbated by a forecast of a surprise drop in annual sales, intensifying worries about market share losses to emerging brands like On and Hoka.
  • Despite a positive overall market sentiment with hopes for interest rate cuts, Nike's significant decline reflected the company's struggles in addressing growth issues and maintaining its competitive edge in the industry.

28.05.2024 - NKE Stock was down 19.7%

  • Nike stock plummeted over 17% following a dismal sales forecast and revenue falling short of estimates, leading to a reduced sales outlook for fiscal 2025.
  • The market reacted negatively to the continuous growth challenges faced by the retail giant, reflecting investor concerns about the company's future performance.
  • Analyst actions further impacted the stock, with revisions to Nike's stock target accompanied by differing ratings, adding to the mixed sentiment surrounding the company.
  • The unexpected slump in 2025 sales predicted by Nike contributed to the stock's worst day ever, highlighting the uncertainty and challenges ahead for the company in the coming years.

28.05.2024 - NKE Stock was down 19.5%

  • Today, Nike stock faced a significant downward trend.
  • The disappointing sales projections for 2025 and a bleak short-term forecast were key factors behind the stock's decline.
  • Investor worries were exacerbated by a lowered rating on Nike shares to "hold" by Stifel and a decrease in price target.
  • The Q4 earnings report drew attention to a lack of product innovation, potentially intensifying the pessimism surrounding Nike's stock.

28.05.2024 - NKE Stock was down 19.4%

  • Following its fourth-quarter earnings and weak FY25 guidance, Nike witnessed a substantial bearish movement.
  • Noteworthy analyst downgrades, including those from JP Morgan and Morgan Stanley, further accentuated the negative market sentiment towards the company.
  • The stock market responded unfavorably to perceived lack of innovation and underwhelming financial results from Nike, resulting in a notable decline in share value.
  • Today's decline in Nike's stock price can be attributed to a combination of unmet earnings expectations, influential analyst downgrades, and broader market conditions.

28.05.2024 - NKE Stock was down 18.2%

  • There was a notable bearish movement in Nike's stock performance.
  • Factors such as analyst downgrades and subdued FY25 guidance post fourth-quarter earnings influenced the stock's decline.
  • Nike's projection of further sales drops and revised full-year guidance also impacted investor confidence negatively.
  • While the overall market sentiment was mixed with U.S. stock futures showing gains, Nike's significant drop had a modestly positive impact on the market's opening outlook.

28.05.2024 - NKE Stock was down 15.8%

  • Nike shares fell by 15% following a less optimistic sales outlook, raising concerns about the company's future revenue potential.
  • The subdued guidance for fiscal year 2025, projecting a decrease in reported revenue, contributed to investors' negative perception of Nike's prospects.
  • The decline in stock value could also be linked to analysts' evaluations and market responses to the company's fourth-quarter earnings, which failed to meet expectations.
  • In summary, the market showed a strong reaction to Nike's uninspiring sales forecast, resulting in a noticeable stock price decline.

22.02.2024 - NKE Stock was down 6.6%

  • Today, Nike (NKE) saw a significant decline in the stock market, influenced by various factors:
  • Despite surpassing earnings expectations, concerns arose among investors due to Nike's projected sales decrease in the first half of the 2025 fiscal year, attributed to a shift in the product portfolio.
  • Competition from emerging brands like Lululemon, gaining market share, pushed Nike to enhance its product offerings with more fashionable designs.
  • The varied performance of U.S. equities, with tech stocks performing well while other sectors struggled, contributed to the overall bearish outlook on Nike.
  • The negative reception of the England kit design, although unrelated to financials, likely contributed to the unfavorable perception of the Nike brand in the market.
i
Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.